What is DAO?In a nutshell, DAO is the methodology for organizing a large group of investors to quickly achieve specific goals and tasks. It brings to light to concept of decentralized organisations. Instead of one main figure making all the calls, control is distributed among team members. Furthermore, these organizations have a flat management system as opposed to a strict, hierarchical management structure.
Business is conducted and executed with the use of smart contracts. DAO members can vote according to the number of governance tokens in their wallets or an equal vote can be held. With the use of blockchain and smart contracts, transparency and authenticity (no falsification) is guaranteed.
DAOs is revolutionary in the sense that money will not only go to creators but can also be allocated to ordinary members of the community. Your vote truly makes a difference.
How does DAO work?Even though DAOs are community-driven, structures, roles and responsibilities are still important for any project to function optimally. To structure the community, custodians are elected. Every nominee must provide a short resume about themselves so that the appointments can be made according to their area of expertise. Custodians are mainly responsible for voting processes and implementing mandates. Mandates are the tasks that are assigned to the DAO and includes mobilizing community activity, creating and maintaining content to promote the project, developing networks etc.
DAO Guardians on the other hand, are responsible for the direct execution of the mandates. For example, 6 – 9 Guardians have to vote in favour of spending funds. For this purpose, a multi-signature system is located in the blockchain wallet.
The driving force behind the DAO is the community and everyone works towards a common goal. Whether members are coming up with bold new ideas or answering questions in chat groups, they are fairly rewarded.
Buy DAO tokens on AltCoinTraderBeat the crowd and get your hands on DAO tokens before its too late. It is better to get in on a project as early as possible so that when the hype hits the market, your chances of making maximum profit are that much greater.
Popular DAO tokens that are available on AltCoinTrader include Dash (DASH) and Compound (COMP). DASH has a Decentralized Governancy by Blockchain (DGB) functionality in place that allows anyone to propose changes to the project. Monthly votes are hosted by masternode owners on proposals that range from marketing to direct modifications of the protocol. COMP on the other hand, facilitates crypto lending solutions that allow users to earn from their crypto inventories. Both allow their communities to direct the respective operations.
The open and permissive nature of blockchain has redefined the relationship between investors and protocols. With that said, DAO will change various aspects of economics and politics in the years to come.